Publication date: February 13, 2025

It is Thursday, February 13, and the AEX is at 945 in the morning session. That is 22 points (2.4%) higher than last week's reading.

What happened on the AEX in the past week

The AEX opened the week at 926 and has sprinted in an almost straight line to our price target at 945. Wednesday afternoon, the market experienced a slight hiccup due to higher-than-expected inflation data from the US but quickly managed to pick up the upward trend.

What does this mean for sentiment on the AEX?

Sentiment on the AEX is positive for the longer term but there is room for an interim correction in the short term.

What is the outlook for the AEX?

The initial price target we set at 945 has been achieved and the long position in the AEX has been closed. Based on past weeks, the expectation is that the AEX will take a brief step back from the 945-950 zone. This correction may push the AEX back into the 920-900 zone. From that zone, the AEX is expected to pick up the thread and round out the uptrend to our second price target at 980.

Above is the chart of the AEX over the past 2 months. The arrows indicate our already expected trend and the most likely scenario for the coming months.

What happened on the Nasdaq last week?

The Nasdaq futures are currently at 21,870 which is 70 points (0.3%) higher than last week's reading.

The Nasdaq futures opened Monday at 21,465 and set this morning's high for the week at 21,927. The Nasdaq is slowly creeping up toward the top of the sideways range between 21,000 and 22,000.

What is the expectation for the Nasdaq future?

The price pattern has been sideways and volatile within the stated wide range for seven weeks. The algorithm foresees weakening and the possibility of a correction is increasing. This means that the price target for our long position from 20,440 is adjusted to 22,000 points and the position is on the watchlist to be closed.

For the long term, the price movement in recent weeks does set up for another price rise. However, the probability of a sizeable correction before the larger price rise is increasing, hence the signal to take profits at the top of the current range and remain neutral for a while.

Below is the chart of the Nasdaq futures over the past 5 months with the ongoing signal and the most likely scenario for the short term.

What happened on the Dow Jones Industrial Average (DJIA) Index this past week?

The DJIA is currently trading at 44,400 points, which is 715 points (1.6%) lower than last week's reading.

The DJIA opened the week at 44,164 and set the week's high at 44,746. With that, the DJIA is heading slightly lower this week.